UNHS Career Planning- Self Check 12

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

1. Which statement about writing a check is false?

• a. You should use ink to write a check.

• b. VOID any check on which you have made an error.

• c. You should postdate all checks to avoid overdrafts.

• d. It is a good idea to complete the “memo” space.

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

2. The process of balancing a checkbook each month is known as

• a. reconciling.

• b. authenticating.

• c. endorsing.

• d. registering.

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

3. The total dollar amount you pay for using credit is called the

• a. interest charge.

• b. installment charge.

• c. annual percentage rate.

• d. finance charge.

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

4. The most common form of consumer sales credit such as VISA or MasterCard is a(n)

• a. open charge account.

• b. revolving charge account.

• c. closed charge account.

• d. installment account.

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

5. A credit union is

• a. a nonprofit savings and loan cooperative association.

• b. a for profit savings and loan cooperative association.

• c. an insurance company.

• d. a bank.

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

6. The federal agency responsible for regulating banks and insuring bank deposits is the

• a. IRS.

• b. SEC.

• c. NCUA.

• d. FDIC.

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

7. All of the items listed below are forms of endorsing a check EXCEPT

• a. blank endorsement.

• b. restrictive endorsement.

• c. partial endorsement.

• d. full endorsement.

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

8. Based on Figure 16-7 on page 399 in your textbook, when are funds available for out-of-town checks that have been deposited?

• a. fifth business day after deposit

• b. first business day after deposit

• c. second business day after deposit

• d. immediately

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

9. A finance charge includes all of the following EXCEPT

• a. interest.

• b. service charges.

• c. insurance premiums.

• d. EFT charges.

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

10. Writing a check for more than you have in an account is called a(n)

• a. postdated check.

• b. overdraft.

• c. debit.

• d. credit.